Cyprus prepares pay transparency law
Cyprus is preparing legislation to implement the EU Pay Transparency Directive. Gender Equality Commissioner Josie Christodoulou said at a conference at the University of Cyprus in Nicosia that companies should view the new rules not as an administrative burden, but as an opportunity to attract and retain employees and strengthen competitiveness, Cyprus Mail reports.
According to her, transparency in setting salaries is important for overcoming the gender pay gap. Christodoulou noted that equality within an organisation can increase employee satisfaction, as well as strengthen business profitability and competitiveness.
Rules for employers
Cyprus missed the EU directive’s deadline of June 7, 2026, for transposing its provisions into national legislation. Labour Minister Marinos Mousiouttas had previously said that the draft law was planned to be submitted to the Council of Ministers in September and then to parliament.
The draft law has already undergone public consultations and discussions with employers’ organisations and trade unions. The document was also sent to the legal service for review.
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Under the EU rules, employees will have broader access to information on how their pay is determined. Employers will be required to use objective and gender-neutral criteria for setting pay and career progression. Job applicants will receive information about the starting salary or its range, while employers will be prohibited from asking about previous pay.
Reporting and job evaluation
Companies with 250 or more employees will report annually on gender pay gaps. Employers with 150 to 249 employees will submit such reports every three years starting in 2027. For businesses with 100 to 149 employees, the requirements will take effect from 2031.
Christodoulou also stressed the need to evaluate jobs objectively based on skills, effort, responsibility and working conditions, rather than only on job titles or established practice. According to the Cystat statistical service, unemployment among women in Cyprus in the second quarter of 2026 stood at 3.7%, compared with 4.7% a year earlier, while the overall unemployment rate fell from 4.3% to 3.6%.
